American Family Insurance reports results for 2025
American Family Insurance reported its results for 2025, ending the year with $19.5 billion in revenue, down from $20 billion in 2024 as direct written premium declined 5.6%. Revenue was impacted by strategic actions, including the 2024 sale of The General, the exit from personal lines at affiliate Main Street America Insurance, and targeted underwriting changes in commercial lines.
Policy retention and new business also declined in 2025, consistent with broader industry trends. American Family ended the year with 12.1 million policies in force, down 11% from 2024 or 3% excluding the effect of the aforementioned strategic actions.
The insurer reported a combined ratio of 84.6% for all property and casualty lines, improving 12.4 points from 96.6% in 2024. Results benefited from fewer large catastrophe losses, which helped offset losses from January wildfires and early spring wind and hailstorms.
The expense ratio decreased to 31.9%, improving from 33.1% in 2024 and marking the company’s lowest expense ratio since at least 1992.
The company reported a net underwriting gain of $2.6 billion in property-casualty lines in 2025, compared to a net underwriting gain of $603 million in 2024.
Life insurance policies in force increased by 0.4% in 2025, while American Family Life Insurance Company reported a decrease in its gain from operations to $122 million, from $129 million in 2024. Higher investment income was offset by higher expenses, lower premium income and an increase in policyholder benefits.
Members’ equity increased to $14.3 billion at the end of 2025, up from $10.6 billion in 2024, due primarily to underwriting results, investment income and capital gains. Group assets also rose to $45.5 billion from $42.2 billion in 2024.
“Insurance is ultimately a promise that we will be there when our customers need us most. In 2025, we honored our commitments to our policyholders while also strengthening financial resilience, operating with greater efficiency, and investing in technology and enhanced experiences for our customers.” – Bill Westrate, chair and CEO of American Family Insurance.
“While industry growth slowed as profitability recovered, we are taking deliberate steps to achieve the right balance between profit and growth. Our disciplined approach and long‑term strategies position us to respond to uncertainty while continuing to deliver industry‑leading service to our customers.” – Troy Van Beek, chief financial officer and treasurer.
